To highlight the fact that undeclared work has a grave budgetary impact as it causes a drop in tax receipts and social security contributions and has negative repercussions on employment, productivity, working conditions, the development of skills and lifelong learning;
To note that, to achieve the platform's objectives, it would be useful to draw on the knowledge and experience of local and regional authorities, given that they cooperate with employment services, social security bodies, interested parties, and formal and informal citizens' networks, and given that they have knowledge and direct experience of the reasons for the existence of the shadow economy at local and regional level;
To call for observer status to be granted to the Committee of the Regions, as the representative of Europe's local and regional authorities, under Article 1(3) of the proposal.
The EP EMPL Committee report on the proposal for a decision of the European Parliament and of the Council on establishing a European Platform to enhance cooperation in the prevention and deterrence of undeclared work takes on board a large number of legislative amendments suggested by the CoR. Most of them are included word-for-word in the report, whereas some of the others are referred to more broadly.
CoR amendments are reflected in different parts of the EMPL report adopted on 7 May 2015 and in the Council text of 16 October 2014, such as organisational aspects regarding the participation of CoR members in the platform meetings as observers (CoR AM1) or the section regarding tasks assigned to the platform (CoR AM2), such as "draw up a methodology for measuring undeclared work". Both the CoR and the EP refer to "quality data". Furthermore, the text regarding the single point of contact in the chapter on the functioning of the platform also reflects, in a broader sense, the amendment of the CoR (AM3). Finally, the text highlights the importance of Member State senior representatives liaising with regional authorities, as well as the fact that the Commission must submit the work programmes of the platform to the CoR. In addition, a representative of the CoR will be able to attend the meeting of the Platform with observer status.
The EP and the Council agreed on a final text during the trialogue on 20 November. The text was adopted by the European Parliament (1st reading/single reading) on the 2nd February 2016.
THE COMMITTEE OF THE REGIONS
- welcomes the Commission's proposal relating to a European platform against undeclared work and recognises that this phenomenon must be fought in a coordinated, united manner so as to maintain high standards of employment in the European Union, to avoid serious social and economic consequences and to resolve problems related to the mobility of workers, as well as to make fuller and more effective use of human capital;
- agrees with the Commission that undeclared work has a grave budgetary impact in that it causes a drop in tax receipts and social security contributions and, by extension, has negative repercussions on employment, productivity, working conditions, the development of skills and lifelong learning, ultimately leading to diminished pensions rights and more limited access to healthcare;
- stresses that these matters are of particular importance to local and regional authorities, as a drop in tax receipts has a negative influence on the budget receipts of local and regional authorities whilst increasing their expenditure aimed at ensuring the basic needs of citizens;
- notes that, to achieve the platform's objectives in practice, it would be useful to draw on the knowledge and experience of local and regional authorities, given that they cooperate with employment services, social security bodies, interested parties, and formal and informal citizens' networks, and given that they have knowledge and direct experience of the reasons for the existence of the shadow economy at local and regional level;
- calls for observer status to be granted to the Committee of the Regions, under Article 1(3) of the proposal, as the representative of Europe's local and regional authorities.